LON:ARB - opportunity to buy?

Are recent moments just a shake of the tree / correction, or do we think this has more room to fall further.

This is clearly an interesting stock, albeit highly volatile in nature.

Mining revenue is growing and they have been using funds to expand their reach into various support areas.

I would say it’s still expensive despite the dip isn’t it?

Potentially yes. They made $18.6m in revenue Q1 2021, and margins are about 84%, so if we take that as is, we are talking $62m profit this year. On the current MCAP it seems cheap.

Then again if we compare against competitors:

Q3 Revenue Q3 RevGrowth Mining margin M. cap
Argo blockchain £ 3.63 million (US $ 5 million) 75% 73% £ 1 billion ($ 1.44 billion)
marathon $ 835,184 160% – – $ 4 billion
Riot blockchain $ 2.4 million 42% 47% $ 4.77 billion

It is more as if this UK stock is being valued on the LON exchange more akin to traditional stocks, whereas the other companies in the table have much higher P/E ratios as tech stocks can have a lot of forward potential priced in. If people are looking for indirect exposure to the ecosystem, it looks a solid choice.

They have 599 coins in the bank, and growing quickly.


Would that still not trade them at around 100 times sales?

If that is the case then isn’t better just to buy Coinbase if you’re happy with them valuations? They actually have a pretty good business, albeit very expensive.

This chart isn’t too healthy either is it? God knows where the floor is

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The price to earnings ratio of ARB vs COIN is far more favourable, albeit I am using estimate figures.

They’re both really expensive is my point. But I’m pretty risk averse so I’d avoid both personally.

I guess it could be worth a bet on ARB, but looking at that chart and how small the business is, it would certainly be a bet.

I will caveat this with I’m not that savvy on crypto so do tell me if I’m talking rubbish, which wouldn’t be much of a surprise.

I sold my position for decent profit. I am waiting for the floor and depending on what btc does I will decide…
Buying now feels risky, according to chart its catching a falling knife. I am not doing that again, I learned this lesson the hard way with other stocks xD

I didn’t sell and was very close to but refuse to sell as I’m anchored to the gains I had when this was at £3/plus I have conviction. Price action was wild this week, unnerving seeing portfolio swing by 5 figures in a short space of time. Hoping for a Friday close above £2. Just need Bitcoin to behave but there’s a potential rumoured shakeout coming too due to option expiry. Zooming out I’m bullish on BTC so I’m bullish on ARB.

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